Energy Profile and Energy Efficiency Improvement in Indian Hotels

1. Energy Profile and Energy Efficiency Improvement in Indian Hotels A presentation by Pradeep Kumar Senior Fellow The Energy & Resources Institute (TERI), New Delhi

2. Tourism in India • According to the Travel & Tourism Competitiveness Report 2009 brought out by World Economic Forum, India is ranked 11th in the Asia-Pacific region and 62nd overall in a list of 133 assessed countries in 2008, up three places since 2007 • The contribution of travel and tourism to gross domestic product (GDP) is expected to be at 6.0 per cent (US$ 67.3 billion) in 2009 rising to US$ 187.3 billion by 2019. • Between 2002-2007 the number of foreign tourists visiting India had grown at an annual 16.5 percent every year. This rate of growth had fallen to 5.6 percent in 2008. January 2009 had seen a 17.6 percent drop in FTAs as compared to the same period last year • Despite short- and medium-term setbacks, tourism revenues are expected to rise by 42 per cent from 2007 to 2017.

3. Hospitality Sector in India • The hospitality sector is expected to rise to US$ 275 billion in the next 10 years. The domestic hospitality sector is expected to see investments of over US$ 11 billion in the next two years within 40 international hotel brands making their presence in the country in the next few years. • At the Vibrant Gujarat Global Investors' Summit, memorandums of understanding ( MoUs) worth US$ 9.10 billion for hotels, convention centres, resorts, and adventure tourism in the state, were signed.

4. Govt. initiatives to boost tourism • This year has been designated as the ‘Visit India’ year. The tourism ministry has increased financial support to tour operators for promoting India in international exhibitions. To involve more operators, the ministry has doubled the upper ceiling of foreign exchange earnings of applicant companies to US$ 4.05 million under the market development assistance scheme • To strengthen the Indian tourism sector ahead of the Commonwealth Games in 2010 and to double foreign tourist arrivals from 5.37 million in 2008 to 10 million by 2010, the ministry is taking measures such as rationalizing taxes, increased focus on infrastructure and easy visas. • The Himachal Pradesh government is working on a 20-year master plan for the promotion of tourism in the hill state. • As part of its efforts to reach out to more people, particularly domestic tourists, Kerala Tourism is turning to new media

5. Hospitality sector’s profile

6. No of rooms available in India

7. No of rooms available in India

8. % Annual growth rate of rooms

9. Projected demand of rooms

10. Energy profile of Indian Hotels

11. Source wise Break-up of Energy Consumption

12. System wise energy consumption breakup in luxury hotels

13. Equipment wise breakup of energy consumption in AC system

14. Energy Performance Index

15. Energy Performance Index

16. Projected Energy Consumption

17. Projected Energy Saving Potential

18. Energy Management In Hotels

19. Energy Management in Hotels • Energy audit has been conducted but mainly of luxury hotels • Special budget has been sanctioned but mainly in corporate houses • Most of the luxury hotels have implemented various energy efficiency measures but at demand side • Not much has been done by budget and classified hotels except use of CFLs

20. Barriers in Implementing EE projects

21. Barriers in EE projects • Lack of EE standards/norms/benchmark and policy • Lack of knowledge source • Lack of neutral solution providers • Common bank on energy efficient products along with energy saving potential • High initial cost of energy efficiency products • Lack of reliable information about the cost-effectiveness and technical performance of existing and emerging options for Energy Efficiency • Lack of confidence of financial companies in Energy Efficiency projects

22. Key Players

23. Key Players • Governments: • Establish legal and institutional frameworks • Integrate EE in decision-making in hotel and tourism sectors • Support administrative efforts to enhance EE • BEE: • Develop and implement energy standards and labeling • Collect and propagate support information for EE • Facilitate EE programs & projects • International organizations • Facilitate development of knowledge source • Facilitate implementation process

24. Key Players • Equipment Manufacturers: • Provide a whole range of EE products to the consumers • Cooperate on developing and later promoting EE technologies • Promote consideration of Life Cycle Cost • Hotel Associations: • Disseminate the achieved results • Appeal to members to apply EE • Negotiate with involved partners in terms of achieving EE targets • Financial institutions • Help to finance EE Programmers • Disseminate information about Energy Efficient technologies • Cooperate with other agencies to implement common programmers

25. Key Players • Utilities: • Improve energy services – supply, transmission and distribution • Propagate EE technologies • Provide incentives/penalties • NGOs: • Publicize good examples • Network to make use of the latest experiences in research both in technology and applications

26. Thanks